For the past three years, the Army and
Air Force Exchange Service(AAFES) has provided you, through our
contractor, AT&T Asia/Pacific,with access to Internet service at Army
and Air Force installationsthroughout Japan, and at Air Force installations
in Korea. Therehave been numerous challenges that AAFES,
AT&T, and you, our customer,have worked through in providing you with
the first Internet servicein AAFES. I am proud to say that
the majority of those challengesare behind us. A lot of hard work
and over $10 million worth ofequipment have gone into getting our service
up to the level you andI both expect from any AAFES operation.
I truly believe we have agood product at a reasonable price, considering
the restrictions wehave to work under to provide a service
that does not require a tollcall from any of our military installations.

As the end of our Internet contract draws
near, our regulationsallow me the option of extending the contract
for two additionalyears. I am then required to solicit
again after the contract hasbeen in effect for a total of five years.
My concern is that if wesolicit for a new contract now, we could
end up losing the ground wehave already gained and possibly end up
paying more for service insome areas. Regardless, any change
of providers would require a lossof service for several weeks and a requirement
to change your e-mailaddress and passwords.

My interest is solely to provide you, our
customer, with the bestpossible product at the lowest possible
price. Unless there is anextensive change in the constraints that
are currently in place, Ido not anticipate that any ISP could offer
any significant improvementin service, pricing, or increased access.
For those reasons I plan toextend our contract with AT&T for
an additional two-year period. Ifyou do not agree with my proposed action,
please send me a note(pacinet@taogate.aafes.com) stating your
concerns not later thanMarch 15, 1999.

Thank you for your time and your continued
support in helping usserve you better.